Chino : Plan to Meet Continued Listing Criteria for the New Market Segment

December 9, 2021

To All Concerned Parties

Company: CHINO CORPORATION

Representative: Mikio Toyoda, President and CEO

(Securities code: 6850, First Section of the Tokyo Stock Exchange)

Contact: Kazumasa Ohmori, Executive Officer, Executive

Manager, Business Management Headquarters

(Tel: [phone])

［Delayed］Plan to Meet Continued Listing Criteria for the New Market Segment

Regarding the restructuring of the market segments operated by Tokyo Stock Exchange, Inc. scheduled for April 2022, CHINO CORPORATION ("the Company") today submitted an application to select the Prime Market for its listing. As the Company had not yet met the continued listing criteria for the Prime Market as of the transition date of record (June 30, 2021), it hereby notifies that it has prepared a plan to meet continued listing criteria for new market segment, the details of which are provided below.

1. Status of Group Satisfaction of Continued Listing Criteria and Plan Timeframe
   The Company's satisfaction of Prime Market continued listing criteria as of the transition base date is that
   the number of tradeable shares and tradeable share ratio, calculated based on the state of distribution of the Company's share certificates, etc. as understood by Tokyo Stock Exchange at the point of record and other factors, meet the respective criteria.
   But the tradeable share market cap and average daily trading value do not meet the respective criteria.
   We are pursuing various initiatives aimed at meeting the continued listing criteria for tradeable share market cap and average daily trading value by fiscal year ending March 31, 2027(the final year of Mid- term plan 2026).
2. Basic Policy on Initiatives Aimed at Satisfaction of Continued Listing Criteria, Issues, and Initiative Details
   The basic policy, issues, and details of initiatives pertaining to improvement in the tradeable share market cap and average daily trading value to meet the Prime Market continued listing criteria are described in the attached Plan to Meet the Continued Listing Criteria.

Plan to Meet Continued Listing Criteria for the New Market Segment

CHINO CORPORATION

(Securities Code: 6850)

December 9, 2021

Copyright© 2021 CHINO Corporation. All Rights Reserved

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Agenda

1. Status of Group Satisfaction of Continued Listing Criteria and Plan Timeframe
2. Basic Policy to Meet the Continued Listing Criteria
3. CHINO's Issues and Initiatives
4. Increase in financial results through Medium-TermManagement Plan
5. Strengthen investor relations
6. Initiative Aimed at Improving Tradeable Share Ratio

Copyright© 2021 CHINO Corporation. All Rights Reserved

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1. Status of Group Satisfaction of Continued Listing Criteria and Plan Timeframe

• Status of Group Satisfaction of Continued Listing Criteria 】

CHINO CORPORATION ("the Company") has not met the Prime Market continued listing criteria for tradeable share market cap and tradeable share ratio as of the

transition base date (June 30, 2021).

	Prime Market	The Company	Status of Group
	Continued Listing Criteria	Figures	Satisfaction
No. of Shareholders	800 units	3,920 units	〇
No. of Tradeable Shares	20,000 units	50,437 units	〇
Tradeable Share Market Cap	¥ 10 billion	¥ 7.23 billion	×
Tradeable Share Ratio	35 %	54.4 %	〇
Average Daily Trading Value	¥ 20,000 thousand	¥ 19,843 thousand	×

• Plan Timeframe 】

The period of the plan for meeting the continued listing criteria is defined as the period until the end of the final fiscal year, fiscal 2026 (i.e. end of March 2027), of our Medium-Term Management Plan 2026 (for fiscal 2021 - fiscal 2026).

For fulfilling the criteria as early as possible ahead of schedule, we will carry out various actions specified in this plan.

Fiscal year ending March 31, 2027 (fiscal 2026) is the final year our "Mid-term plan 2026"(fiscal 2021 - fiscal 2026).

We have established this as the plan timeframe for meeting the continued listing criteria.

• We published the medium-term plan for six years from April 2021 to March 2027 on March 9, 2021. https://www.chino.co.jp/wp/wp-content/uploads/20210513.pdf
• The Medium-Term Management Plan 2026 (for fiscal 2021 - fiscal 2026) is hereinafter referred to as the Medium-term Management Plan.

Copyright© 2021 CHINO Corporation. All Rights Reserved

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2. Basic Policy to Meet the Continued Listing Criteria

【 Status of Group Satisfaction of			Prime Market
		Continued Listing	The Company Figures
Tradeable Share Market Cap Criteria 】		Criteria
Tradeable Share	¥ 10 billion	¥ 7.23 billion
		Market Cap

"Tradeable Share Market Cap" ＝ "Market Cap" × "Tradeable Share Ratio"

The Medium-term Management Plan has four basic strategies: first, further development and expansion of growth areas; second, enhancement of core businesses and value creation; third, strengthening of the foundations and expansion of business overseas; and fourth, establishment of a resilient management base. We will carry out priority measures based on these strategies and step up investor relations (IR) activities to increase our recognition in the market with a view to boosting our corporate value.

According to the Tokyo Stock Exchange's initial assessment, our tradeable share ratio is 54.4% and this meets the relevant requirement for listing on the Prime market. We will additionally implement efforts to increase the tradeable share ratio in a bid to raise the

tradeable share market cap.

			Prime Market
【 Status of Group Satisfaction of			Continued Listing	The Company Figures
	Criteria
Average Daily Trading Value Criteria 】 Average Daily Trading	¥ 20,000 thousand	¥ 19,843 thousand
		Value

To fulfill the requirement in tradeable share market cap in mentioned above, we will accelerate implementation of the Medium-term Management Plan in order to continuously increase corporate value. We believe that this action will help us sufficiently meet the requirement in daily average transaction value.

Copyright© 2021 CHINO Corporation. All Rights Reserved

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